Human Resource Management.

Dividend policy is said to be one of the crucial decision in corporate finance management from past decades as decision of dividend is linked with the financial management objective of wealth maximization and profit maximization it is always crucial decision. Which should be given preference wealth maximization or optimum capital structure? Wealth maximization is said to be financial management practice which focus on increasing the net worth of a company or firm so that return for shareholders can be maximize. No universal consent has yet come out after several decades of study. There are theories and studies which have contributed to decide amount of dividend. Some theories says  that there is relation between dividend decision and value of firm(relevance theory) and some says there is no such association(irrelevance theory).There are conflicting viewpoint as far as the impact of dividend decision on the value of the firm is  considered. The objectives of this research are firstly, to define the concept and scope of dividend policy and secondly, to study the irrelevance theory/ (Modigliani-Miller Model) of dividend policy and relation between dividend policy approach and market share prices. Secondary data has been taken for research. The CNX Dividend Opportunities Index is considered as Universe. The study is sourced by critical and creative analysis (literature review) of research papers and Case Study Method. There are not significant fluctuations in share prices after declaration of dividend. Sometimes these fluctuations are associated but not positive always and there are other factors which influence share prices.  It will facilitate the organizations to identify with the behavioral aspect of shareholders which they can use to add value which move towards the way to wealth maximization as well as profit maximization.